http://foreclosure.auction.videos.googlepages.com

Has anyone bought (or bid) on a foreclosure at the actual Courthouse auction (like the ones in the videos above) ?

If so, would share your (or someone else's) success story ?

I have attended several here in Georgia. I have bid on a few but never been the high bidder. I was very surprised at how few actually got any bids. In most cases the bank had a rep there to bid their starting price. If anyone bid more than that they were typically the winner. Unfortunately, most starting bids were too high compared to the value of the property to make it a good investment. There are deals out there...just stick with it.

Each state is different with there auctions and some have post redemption periods after the sale so watch out.Ga doesn't have post redemption so no problem there.In GA it is a cash sale at the steps.

If a property has alot of equity it is better to approach the owner and buy out there equity before the sale.In other words the property needs some updating and fixed up would be worth 350k and the owner owes 270k.You could throw 10k to the owner for 80k equity postion.You would have to watch out for title and liens positions,taxes.etc.

The good homes at sale are the ones that have 80/20 loans on them.The senior 80 percent forecloses and wipes out the second and at auction with a little appreciation since the homeowner bought the house you can creat a 25 to 35 percent equity position payign cash at the auction.

Most properties at the auction will be repurchased by the bank and sold REO later on.The reason is the values with all the crap added to the loan late fees,penalties,interest,attorneys fees are not market value.There are a few serious buyers at auctions and only say out of 100 foreclosures that month maybe 5 to 10 good properties with enough equity spreads or seconds being wiped out to bid on.

I have purchased two properties at courthouse auctions. One is my current home, purchased for $43,000 and now worth $80,000-$100,000. It could be worth more if I ever got around to completing the planned improvements. The second was an income property, two mobile homes on 1-1/2 acres purchased for $8,000, and eventually resold. I didn't have any issues with second mortgages or liens on either one. As super said above, there is very little equity in most of what goes to the courthouse. Most often, the prior owners owe more than the market value, and it's best to let the bank buy it and look for it to appear later as an REO, when it will actually sell for a more reasonable amount. Savvy investors who know their markets will recognize when a property is being auctioned that can make them money, and they will be there to bid against you.

My husband and I have purchased 2 at the courthouse and both turned out to be great buys! One we saw inside before hand the other we didn't and the owners were still in it. We let them stay 1 month rent free in exchange for not trashing the place when they moved out. By the time we finished remodeling we could have just let them trash it, we tore out both baths, kitchen, fireplace, 2 walls. Turned out beautiful and made a nice profit when it was all said and done. We purchased one before it went into foreclosure and that one turned out great too. We are always looking, but we haven't purchased one lately, the price just hasn't been right for us to turn the kind of profit we like to. We have paid for our son's college with what we have made. We will do it again when the right one comes along.

Yes, that's how I make my living. Almost like a preacher, work like a dawg all week to see how you do in one day.

Looks like Georgia is well represented here. I have been buying on the steps for four years. Do your homework and come ready for the show. It isn't the fabulous riches that everyone wants to believe it is, but you can make a decent living at it.

I used to buy on the steps in Cobb County.. my first one was a slam dunk, the second one I got my butt handed to me. If you guys are looking for preforeclosures.. we have 30,000 of them..

Yeah it's a decent living, I really enjoy it. My brother and I have our hands in all facets of real estate. We are commercial appraisers, brokerage, and have been buying and remodeling REO's for 18 years. I enjoy the research, the hunt, and then getting down and dirty in the rehab. Although as our biz has grown, most of my time is spent running the biz and researching. I'm doing less hands on now, but still take a day off every now and then, turning off the cell phone, to play on the job site. Gotta enjoy the power tools you've bought.

I have been to hundreds of auctions over the years for various reasons, only about a dozen times have I actually bid on a property. In my area (Pinellas County, FL) the courthouse is laden with (no offense to those here on the forum) that purchased the 'late-night' get-rich quick dvds on TV and think they are investors. This individuals would big the property tens of thousands higher than its worth and make it almost impossible for an investor to get, rehab, flip and profit.

Now if your courthouse is different I would say go for it. If it is like mine, then you need to get it prior to the auction.

I've been hanging around the courthouse steps trying to figure out if the auctions for Land Only hold any bargains. (It's easier to get into - smaller initial investment, no buildings to worry about, etc.)

But how to judge each one's investment potential? And what's the best way to find out about the zoning, build-ability, utilities, restrictions, pending fines and assessments?

Thanks for your thoughts...

That will be state specific.Usually with land at the steps they give a legal description only so you need to get a plat or copy of a survey before bidding to know what you are getting.

As to waht you can do with it most local cities and counties have a land use map with existing zoning codes and growth maps with extendign boundaries for the future. It is very important you know what is possible with the land you are buying. You might have a great use for the land but it doesn't conform to the area and the county and city will shut you down in the zoning process unless it's such a huge project it would transform the are (600,000 mixed use development etc.)

Obviously if it's a plot in the subdivision you will be stuck reselling the lot for a home because of the covenants.

When I look at land I know by the size what it will take to sell it.

A big common misconception is people focus on how CHEAP they can get the land!

It's more about location,topography,environmental assesments etc.

For example you could buy land at 20k an acre only to find out with the topography of the land it will cost 200k an acre to level and clear it to get it site ready for a commercial development. Subdivisions you have alot more leeway as you don't need the flat surfaces as much as with commercial projects and visibilty from the roads.

I could go on and on but basically find a competent commercial broker in your area or land expert that can help you out. The last thing you want to do is make a mistake with the investment money you have and be STUCK with land you can't sell or might have to take a loss on.

good luck